Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-04-28
HOW THE INTERSTATE FOLLY WORKS.

"
The injection into our domestic econ
omy of the protective principle as between
States and localities in the common coun-
try. and as between the citizens of the ma
ton, is a novel and dangerous experiment
for which the Democratic administration is
responsible, and for which the people will
certainly call it to account.
1t has established this new doctrine at
the expense of its free-trade creed, by pro-
iecting the interstate bill into
our system of laws. Through this meas
ure the Democracy and the Democratic
President at its head has said, despite all
natural laws to the contrary, that here
after transportation shall be known as
commerce, and upon it there hal be lev
led a tax that shall be paid by the pro-
ducers on the one hand, and the consumers
on the other.
The rivers and other navigable waters
are natural arteries of commerce, upon
which no charge is levied or toll exacted.
The railways Of the land have been en-
gagged in knitting the country together, in
bringing the distant producer and the dis
tant consumer TO each others doors, and
enabling them to exchange their products
and the results of their industries with
the least possible friction, and for the high
est possible reward. In doing this the
railways voluntarily surrendered to the
commercial exigencies growing out of the
existence of the free water ways. The two
were driven by necessity to transport
each as cheaply as the other between
points where they met. Upon that basis
the minimum charge for carriage was es-
t~ablished, and the producers and the con-
sinners having the option to choose be-
tween these carriers, reaped the benefit,
while both the water and rail carriers
were also benefited by increased traffic
and business development, and re-
manned undisturbed in their right to
charge the true value of the service for
carriage between points where the two fact
ors do not meet. But this, too, was lower
than it would have been, but for the min
imum rate growing out of the competition
referred to, since the latter, known as the
through rate for the long haul, enabled
carriers TO utilize their surplus capacity
and facilities.
No carrier system can exist and main
tain its capacity on a level with the de-
mands for local service only. Its salary, in
vestment and other costs continue, whether
the local traffic absorbs half or three
fourths Of the carrying capacity. The
surplus, therefore, represents the excess of
capacity over local demand, and it is this
excess that is employed in the competitive
or through service, at the competitive or
minimum rate for the long haul.
Now Il Democratic, free-trade admin
istration declares that the railways
shall not adjust themselves to the
natural arteries of transportation
they shall not employ their surplus
capacity at the competitive rate, unless
they accord that rate to local and non
competitive traffic also. As the latter is
the basis for any operation at all, the roads
cannot accept the conditions, and the water
ways, to which the law does not apply, are
thus protected at the expense of the peo-
pie of all the States crossed by rail lines.
Take the case of Chicago and St. Louis.
Both are directly related to the ocean.
Both are ocean ports, indeed, and they
compete for the produce of the West, in
exchange for their merchandise imports
and their manufactures. Chicago invests
In rail lines TO bring Western produce at a
low rate to her door. OF course this bene-
fits the producer and develops his capacity
and inures also TO the benefit of the con-
sumers. But Chicago must bring in these
products just as cheaply as St. Louis, her
competitor. And this was being done, and
there was no reason for complaint.
Now comes this free-trade Democratic
President and his Congress and prohibits
the citizen of Chicago from continuing
his enterprise, and thereby protects St.
Louis at the expense of the other locality.
The Chicago citizen has eliminated dis
lance at his own cost, secured the pro-
ducer in a market, and a choice of mar
kets, and the consumer the lowest cost for
his necessities. But the law refuses the
Chicago citizen the right to haul Western
produce to his market at Il low rate, unless
he will perform a like service for a n
competitor, who, under no circumstances.
eau command a rate below the value of
the service.
The long distance was not overcome at
the expense Of either the producer or con-
SINNER. They did not ask for this protec-
ton OF N citizen at the expense of
another OF a common country, but the
free-trade Democracy has forced it upon
them. 1t has declared that the price of
products at the point of expectation shall
be low, and correspondingly high at the
point of delivery. The producer in
the West must take a low price
for all he sells-because Congress prohibits
the elimination of distance by a low rate
and pay a high price for all he receives.
Thu is "free trade with such a vengeance
that the consumer class will presently be
heard from, pronouneing its verdict upon
the Democratic Administration that has
by statute entered upon the work of es-
tranging the people of the several States
from each other.
A MERCANTILE OPINION.
The San Francisco Gail reports one OF